Accounting EXCEL ASSIGNMENT

EXCEL ASSIGNMENT

 

Assume the following data (where the xxx is the last three digits of your panther id):

 

Month Machine Hours (hrs.) Maintenance Costs ($)
1 1,330 102,xxx
2 1,400 103,xxx
3 1,250 103,xxx
4 1,470 108,xxx
5 1,620 116,xxx
6 1,680 115,xxx
7 1,490 107,xxx
8 1,280 101,xxx
9 1,450 106,xxx
10 1,580 113,xxx
11 1,300 100,xxx
12 1,600 113,xxx
13 1,650 113,xxx
14 1,440 109,xxx
15 1,350 102,xxx
16 1,670 114,xxx
17 1,480 106,xxx
18 1,360 103,xxx
19 1,340 103,xxx
20 1,540 112,xxx
21 1,320 102,xxx
22 1,410 104,xxx
23 1,270 101,xxx

 

For example, if your panther id is 1234567, then your maintenance costs would be $102,567 in month 1; $103,567 is month 2; $113, 567 in months 10, 12, and 13.

 

Assume that the following relationship holds:

Maintenance Costs = a + (b * Machine Hours)

 

REQUIRED

Estimate the values of a and b, using,

  1. the High-Low Method, and
  2. the Linear Regression method.(for help try “Linear Regression in Excel” on YouTube)

Note, to use the linear regression method, you MUST use the Microsoft Excel program.

Make sure to report

  1. the values of a and b;
  2. a scatter plot of the data points, and
  3. the R-square or the adjusted R-square
  4. Which of the above two methods is more appropriate? Why ? (3 sentences maximum)

Last Updated on February 10, 2019 by Essay Pro